If you are overwhelmed with debt filing for bankruptcy may help bring some relief. Bankruptcy can allow the borrower to restructure his outstanding debt and emerge from the bankruptcy with a fresh start. There are many different types of bankruptcy filings and the rules for each type will vary greatly. Therefore, if you are considering seeking bankruptcy protection you should always consult a Tampa bankruptcy attorney for legal advice before taking any action.
In most cases, personal debtors will either file for a Chapter 7 or Chapter 13 bankruptcy. A Chapter 7 is considered a liquidation bankruptcy because the borrower’s assets will be sold by the bankruptcy trustee in order to pay back the creditors. On the other hand, a Chapter 13 will not require the borrower to sell his assets; rather the borrower will make monthly payments towards the debts owed. The monthly payments are forwarded to the bankruptcy trustee, who then disburses the funds to the creditors according to the Chapter 13 payment plan. Once all the scheduled payments of the Chapter 13 payment plan or Chapter 7 liquidation is complete the Tampa bankruptcy lawyer may petition the court for a discharge on behalf of the debtor. The discharge will release the debtor from liability of all the debts included in the bankruptcy. Furthermore, the creditors included in the bankruptcy will be prohibited from initiating any further collection activity against the debtor. However, the bankruptcy filing may continue to negatively affect the borrower’s credit score for many years after the discharge.
Bankruptcy filings will linger and negatively affect a borrower’s credit score for up to seven years from the date of discharge. Credit scores typically range from 400 to 840, and lenders will evaluate a borrower’s credit worthiness based on how high the credit score is. The lower the credit score the tougher it will be to obtain financing and borrow money at low interest rates. A good Tampa bankruptcy attorney will continue to work with his clients long after the discharge to help monitor and improve the borrower’s credit score. If the borrower does not improve their credit score they could continue to suffer from financial stress and may even need to file for bankruptcy again.
The Tampa bankruptcy attorneys at Florida Law Group work closely with credit reporting agencies and creditors to help rebuild a borrower’s credit. Our years of experience and industry connections have provided us with valuable knowledge, which we use to help our clients get the fresh start they need. By increasing their credit score our client’s can borrow the money they need at low interest rates and greatly reduce the possibility of needing to file for bankruptcy again.
Florida Law Group specializes in Bankruptcy Law, Florida Divorce Law, Immigration Law, Florida DUI Law, and Florida Foreclosure Law.Florida Law Group has served as a dependable source for information regarding a Tampa Bankruptcy Lawyer for many years. For dependable answers and advice on finding a reputable Tampa Bankruptcy Lawyer visit our website today.